Investing.com – It rose to multi-year highs on Friday, hitting a level one expert said would mark prices in a 'Trump Trade,' leaving little room for further upside and creating chance of a bearish turn on the green. .
It jumped 0.5% to 109.67, and had earlier hit 109.91 – the highest since November 2022.
“Start selling the dollar if our DXY 110 target is broken. The price was brought in by slower global growth and a more hawkish Fed. in a note.
The company argues that this level would have been fully priced in the “Trump-trade” and that it would be started from overvalued levels.
The call for a weaker dollar comes as the strategist believes that “the strength in US inflation, particularly relative to other markets, is in its final innings,” amid expectations of slowdown in the US.
While the latest jobs report for December showed little sign of a slowdown, Ntonifor sees the risk of the US economy slowing due to “tight financial conditions in the US.”
Looking ahead, Ntonifor suggested that a situation could emerge later this year where “equity markets correct, the US dollar declines, and bond yields fall.”
